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Alberta to cut oil output by 325kbd

The Alberta government has announced a curtailment of 325kbd (6.25Mnta) in oil production beginning in January 2019 as it responding to the historically high oil price differential that is costing the Canadian economy over $80 Mn/day.

The reduction is expected take three months, and will then be eased until production is balanced with export capacity – a reduction of approx. 95kbd (4.75Mnta) on average through the rest of 2019 when the curtailment will cease.

The government said Alberta now produces 190kbd (9.5Mnta) more raw crude oil and bitumen than can be shipped by pipelines, railways or other means, and oil in storage is at record highs and approaching capacity.